Trump looks to rein in fuel prices ahead of midterms; waives threat of 100% tariffs on India over Russian oil, citing ‘national interest’ as US inks diesel pact with Moscow

US President Donald Trump waived fresh sanctions, restrictions and duties on Russian energy exports under a law enacted last month, citing national interest and bringing relief to India from potential tariffs of up to 100%. Trump invoked a provision in the law that allows the President to grant a waiver from further punitive measures if such a step is in the US national interest. “Pursuant to section 115(a) of the Graham Act, I hereby waive the application of any duties provided for in sections 112 and 113,” he said in an executive order late on Friday.

The Lindsey O Graham Sanctioning Russia and Iran Act proposed tariffs of up to 100% on imports from the top five purchasers of Russian oil and gas, including China and India, within 30 days of its enactment on September 18.

Following the waiver, India will not be penalised for sourcing oil from Russia, its biggest supplier.


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Moscow LNG plan on track

In August, Russian crude accounted for roughly 44% of India’s total oil imports. India is also planning to purchase liquefied natural gas from Russia under long-term contracts.

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Trump’s waiver comes in the wake of a deal with Russia for the supply of diesel to the US. It also comes days ahead of US Secretary of State Marco Rubio’s visit to Mumbai and Jamnagar. Rubio is expected to visit the world’s largest single-site oil refinery, operated by Reliance Industries in Jamnagar.

On Thursday, US envoy to India Sergio Gor said Trump would take a decision on the waiver within the next 10 days.

India had informed the US on several occasions that any tariffs under the new law would adversely impact bilateral relations.

“Good sense has prevailed for now, but constantly holding a loaded gun to your strategic partner’s head is no way to build a sustainable long-term partnership. Diplomacy by hostage-taking is bound to come unstuck,” an expert told ET on condition of anonymity.

India has consistently defended its purchase of Russian oil as being in the interest of its 1.4 billion people and global energy prices.

The situation has been further complicated by the war in Iran and repeated attacks on vessels in the Strait of Hormuz. Additionally, the security situation in Saudi Arabia provides no relief.

Meanwhile, India became the first official partner country for Russia Energy Week, in Moscow this week.

Jointly inaugurated by the Embassy of India and steel ministry officials, the India pavilion at the exposition featured representations of projects from major Indian entities, including National Mineral Development Corporation, Steel Authority of India, Manganese Ore (India) and Metallurgical & Engineering Consultants (India), alongside eight major Indian oil companies.

At the exposition, the two sides discussed expanding collaboration across oil and gas, mining, the steel value chain and coking coal supplies from the Russian Far East. They also highlighted evolving energy dynamics, including Indian investments in Russian energy assets and shifting petroleum product flows.